A joint venture between Ivanhoé Cambridge, Bouwinvest Real Estate Investors and Greystar Real Estate Partners LLC has agreed to acquire a co-living asset in the western suburb of Paris subject to obtaining the necessary planning permits.
The deal is the first for the partner’s Paris student and young professional accommodation venture, which was announced in June 2020 and has an investment capacity of €1 billion.
”The project fits the venture’s strategy of delivering purpose-designed, amenity-rich and highly serviced residential that responds to growing demand and the need for flexible housing options for younger people in Paris,” said the companies in a joint statement.
The proposed plans will deliver over 370 new co-living units subject to obtaining all relevant approvals. They include the conversion of the existing office building to residential and the development of a new mid-rise building to create circa 118,400 sq ft (11,000 sqm) of high-quality space. The project will be developed in partnership with three highly experienced national developers through a VEFA (“Vente en l’Etat Futur d’Achèvement”) contract.
The asset is located in a mixed-use office and residential area, well-serviced by public transportation linked to the La Défense business district, Paris CBD and several large corporate headquarters.
“We are delighted with the implementation of this strategy aimed at meeting the recurring need for student and young professionals housing in the Greater Paris. This first project is also a great opportunity to convert an office building that no longer meets post-Covid market standards into premium housing”, said Arnaud Malbos, Head of Investments, Europe, Ivanhoé Cambridge.
Hideki Kurata, Managing Director – France, Greystar, commented: “The asset is the first of several deals in our robust pipeline for the Paris Venture. We are delivering a new product to the French market that meets the increasing demand for high-quality rental housing from single-person households and the needs of early Gen Z and elder Millennials. We will provide a rental solution for young professionals that focuses on community living in purpose-designed buildings with a wealth of amenities underpinned by exceptional service offering a compelling alternative to the traditional market.”